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  • USD/CAD starts holiday-shortened week on the back foot. 
  • WTI trades in the positive territory above $48 on Monday.
  • USD struggles to find demand after US Pres. Trump signs COVID-19 relief bill.

The USD/CAD pair pushed lower toward 1.2800 on Monday but staged a modest rebound ahead of the American session. As of writing, the pair was down 0.2% on a daily basis at 1.2841.

Rising crude oil prices helped the commodity-sensitive loonie gather strength at the start of the week. With US President Donald Trump signing the COVID-19 relief bill into law later Sunday, the risk mood turned positive and crude oil prices gained traction. At the moment, the barrel of West Texas Intermediate is advancing 0.65% at $48.60.

Eyes on Wall Street

On the other hand, the USD is having a tough time finding demand as a safe-haven and allowing USD/CAD to stay in the negative territory. The US Dollar Index (DXY), which dropped below 90.00 earlier in the day, is currently posting small daily gains at 90.28. The fact that there were no fundamental drivers behind the DXY rebound suggests that this move was a technical correction.  

In the meantime, the S&P 500 Futures are rising 0.7% on the day and the greenback could weaken against its rivals in the second half of the day if Wall Street’s main indexes rise sharply.

There won’t be any significant macroeconomic data releases in the remainder of the day.

Technical levels to watch for